Layoffs will continue. BC is teeing up Target Corp for a sale or merger of the entire core business. First, he sells off all ancillary business operations (TCI, Pharmacy, Target Ticket, Target Bank), and underperforming areas (Target Canada) to temporarily increase the stock price and make the company focus more narrow. A sale of FRS is on the horizon. Once that's all done, TGT will be a perfect acquisition target for one company that doesn't yet have what Target has--real estate. Think about it. BC himself said that TGT Canada would have become profitable In 6 years. 6 years is not a long time to wait when billions have already been invested. Unless you are looking for short-term stock price inflation and cutting the drag on the bottom line to make it ripe for acquisition.
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Maybe Tesco? Think about it. New CIO sent to sent to check things out and "prepare" Target for a takeover. It's happened before: https://en.wikipedia.org/wiki/Stephen_Elop
Oh by the way, I bet HQ has instructed all stores to find a way of getting rid of all grandfathered team members. That way no more pension money flowing to those hired before 2008. Have other stores been loosing many of their team members with8 or more years of service?
Op, your logic befits someone who doesn't understand how to run a business. Sure, Target already sunk billions into Canada, what's the harm of sinking a few more billions? Well, the problem is money doesn't grow on trees in the real world. If you have $1 billion to spend, should you continue to invest it in Canada with the hope of turning a profit in 6 years or invest it domestically? You need to place your bets where you are getting the best returns. Any idiot knows that it's stupid to throw more money at Canada while you are losing grounds domestically. I guess you are a special idiot to think that Canada is a good bet since we lost billions already.
Next to go should be Target India! They provide no value at all!
I think Sears Holdings should buy Tgt.
Is a sale of FRS really on the horizon? and if so, 6 months in the horizon or years?
Okay this may sound nutty but what about CostCo? Going against the model Wal-Mart used (regular stores first, then expand to warehouse stores), CostCo acquires or merges withTGT and goes to a mainstream, no membership required, bricks-and-mortar operation all across the US (except for NH). Anyone saluting that flag?
I disagree on the sale who is going to buy Target. Please do not say Amazon. I am sure the board has incented Brian to cut cost and increase share price and focusing the business is the best way to do that over the next 3-5 years at the expense of the long term. Brian likely only has a 3-5 year shelf life anyways. Best buy is 3-5 years ahead on this same journey. The journey starts with layoffs. Slowly replacing the c-suite. No new innovation wait for the economy to swing up. Then after income has returned slowly look at new strategic plays.